Mastering Support & Resistance using Pivot Points
For this strategy, we will be using the Pivot Points indicator and the Exponential Moving Average (EMA) indicator to find our support & resistance levels. These indicators are based on fixed mathematical formulas, meaning that the methods for finding the levels are always the same. There is no room for discretion.
Pivot Points are price levels derived from the previous candle’s High, Low, and Close. They are often used as reference levels to identify potential support, resistance, and possible breakout zones. We use the Pivot Point formulas to derive 3 levels based on the previous Daily candle.
Resistance. The highest of the levels
Pivot Point. The middle level that we actively use as support
Support. The lowest level that we use to place our stop loss
This template is designed to run on the 1H timeframe.
Step 0: Access the Strategy Concept Template [1 Min]
Click the button to load the trading bot directly onto your canvas:
Your canvas should display 23 blocks. Check? Let's continue!
Step 1: Export the Trading Bot [1 Min]
Before diving into customization, export the bot with the upper-right export button to download the file.
Step 2: Upload to MetaTrader 5 [4 Min]
Don’t know how? Refer to our help article "Exporting Your First Strategy".
Step 3: Understand the Logic [10 Min]
You can build the Pivot Points indicator in Profectus AI with 1 Formula block and 4 variables:
Pivotpoint
Resistance
Support
Highlow
Next, we are going to build the formulas in one formula block.
The formulas we are using are:
Pivotpoint = (Previous High + Previous Low + Previous Close) / 3
Highlow = Previous High - Previous Low
Support = (2 × Pivotpoint) - Previous High
Resistance = (2 × Pivotpoint) - Previous Low
The formula starts with the variables as we defined them earlier. Make sure to apply them in this order in the formula block.
In this article, we are only focusing on the buy-side of the strategy and that means a focus on support levels.
Structurally, a Pivot & EMA support level is defined as:
50-period EMA is above the Pivot Point on the 1H timeframe
Price just broke above the 50-period EMA on the 1H timeframe
Price is below the 18-period EMA on the Daily timeframe
These characteristics make this iteration of support levels completely mechanical and allow for trading opportunities.
We can divide the creation of this no-code EA for Pivot EMA Support Strategy into 4 steps.
Identify Pivot Points & Trade levels. Using the Run per candle block, we first calculate the Pivot Points using the formulas as described earlier. We then calculate if the trade levels are valid. Finally, we draw the Pivot Points on the chart for visual aid.
Defining a bullish trade setup from Pivot support. This section houses all the rules to define a valid trade setup. Most important is the break above the EMA, the distance between the Pivot and the target, and the placing of the buy pending order on the 50 EMA if all trade rules are satisfied.
Trade management. If a trade is taken, the trade is managed through 2 simple rules. First, if price crosses the Daily 18-period EMA the trade is closed immediately. If the trade is floating 3R profit, and the Daily 18-period EMA has not yet been crossed, the stop loss is moved to breakeven for a risk-free trade.
Reset variables. The last section is about resetting all values and variables at the end of each trading day so the system can start looking at new trade setups the next day.
The screenshot below shows what a valid Pivot Point Support trade setup looks like on a chart to help you better understand the rules.
Step 4: Make It Your Own [10 Min]
You can adjust and experiment:
Add more strategy rules or include the Pivot Point EMA levels component in your own strategies
EXPORT and see the differences.
Add the sell side using resistance levels to take advantage of selling opportunities as well
EXPORT and see the differences
Play around with timeframes and assets
EXPORT and see the differences.
Refine the rules to fit your own interpretation of the Pivot EMA Support & Resistance concept
EXPORT and see the differences.
This template is designed to run on the 1H timeframe.
Conclusion
The Pivot EMA Support & Resistance strategy removes all the ambiguity from the support & resistance concepts: simple rules and universal application. Now it’s your turn — backtest it, tweak it, and evolve it into your own winning system.
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Templates are for educational purposes only.
Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀